Once you tweet, you can’t go back to email. Okay, that’s an exaggeration, but let’s just face it, all forms of media are here to stay. But depending on what you are tweeting or broadcasting on social media sites on the behalf of your company, you had better be careful: the Financial Industry Regulatory Authority (FINRA) has established some guidelines on what needs to be kept in your firm’s records.
So if you are talking about your company’s cafeteria menu, no, those snarky comments will not haunt you in the future, unless you have made an enemy of the mess hall’s head chef. But if you are using Twitter, LinkedIn, and other forms of social media, and if your company is publicly traded, then watch what is belted out from your keyboard and from those of your colleagues’. FINRA is advising companies that before they let its employees discuss the firm’s “business as such,” the company had better be sure that it can maintain those records to stay compliant with the Securities Act of 1934 and
NASD Rule 3110.
I have mentioned in the past that
looking for investors through social media sites is opening a huge can. To that end, even if you think your firm’s stock is the best investment since, well, sliced bread—don’t tweet about it.
So moving towards the corporate social responsibility world—what about electronic forums, the way in which most companies are engaging their stakeholders on issues affecting the company’s environmental, social, and governance disclosures? Interactive forums are exempt from these rules as long as nothing is imparting that the firm is advertising the sale of its securities. Nevertheless, the safe bet would be document everything posted just to protect your company in the event someone takes issue with your firm’s actions down the road. But as for those third party posts by folks outside your company, e.g., those of your stakeholders—not to worry. Unless someone at your firm is actually preparing them, or if there are links going back to your firm’s web site which would infer that you company is endorsing the content. The upshot is: you had better find a good technological solution for documenting your organization’s and employee’s social media activities.
The days of relying solely on press releases and static web pages to pitch your firms products—and progress on environmental, social, and governance issues—are winding down. Your company is best served if you have a well thought-out social media strategy in advance; and make sure that everything is documented just in case unexpected hassles await your organization down the road. Companies who dismiss social media do so at their peril. Companies who let it get out of control will find themselves in a fix, too.
